Poverty Alleviation and Development in Yunnan Province

　　【Overview】  Located at the southwest border of China, Yunnan Province has many border areas, mountainous areas and minorities and has a large number of poor people. It has 73 national key counties and 7 provincial key counties for poverty alleviation and development and is one of the main battlefields for poverty reduction in China.

　　【Poverty alleviation conferences】 In 2010, Yunnan Province co-organized two international and domestic meeting on poverty reduction; On July 17, the Poverty Alleviation Conference of Asian Political Parties was convened in Kunming of Yunnan, more than 120 people from 57 political parties of 30 counties attended the event, and some African countries’ political parties, the United Nations, the Asian Parliamentary Assembly and other international organizations also sent observers to participate in the meeting. On December 15, the "Third Forum on the Strategies for Sustainable Development of Poor Areas of China" was convened in Zhaotong of Yunnan. Li Yining, Member of CPPCC Standing Committee and President of Institute on Poverty Research at Peking University, Yan Youqiong, Standing Deputy Director of the Provincial People's Congress and Vice Governor Kong Chuizhu attended the opening ceremony and delivered speeches. Three meetings were held to mobilize all circles of society to participate in poverty reduction. On May 9, the on-site meeting on poverty alleviation and development of Yunnan Province was convened in Zhaotong. Vice Secretary of the Provincial Party Committee Li Jiheng addressed the meeting, Vice Governor Kong Chuizhu chaired the conference and made work arrangements, and Deputy Director of the Standing Committee of the Provincial People's Congress Yang Jianjia and Vice Chairman of the Provincial CPPCC Wang Xuezhi were present at the event. On March 2, the work conference on the fixed-point poverty alleviation of central state organs and enterprises in Yunnan Province was convened in Beijing. Vice Secretary of Yunnan Provincial Party Committee Li Jiheng and LGOP Deputy Director-General Zheng Wenkai addressed the meeting. Vice Governor Kong Chuizhu chaired the event. On August 28, the 12th joint meeting on Shanghai-Yunnan pairing-off poverty alleviation was convened in Shanghai. Secretary of Shanghai Municipal Party Committee Yu Zhengsheng and Secretary of Yunnan Provincial Party Committee Bai Enpei addressed the meeting. On June 30, the work conference on supporting Yunnan’s Bulang Nationality (Mao and Kemu people) and Shanyao people of Yao Nationality was held in Beijing. Vice Secretary of Yunnan Provincial Party Committee and Governor Qin Guangrong, Vice Governor Liu Ping and Vice Governor Kong Chuizhu addressed the meeting. Yang Jiefei, Deputy Director of Supervision Office of the General Office of the CPC Central Committee, LGOP Director-General Fan Xiaojian, LGOP Deputy Director-General Wang Guoliang and representatives of member units of the National Coordination Group were present at the meeting and delivered speeches.

　　【Investment of anti-poverty funds】 In 2010, 2.483 billion Yuan of financial anti-poverty funds was issued by government above provincial level (of which 1.877 billion Yuan was from central government and 605 million Yuan was provincial matching funds), 282 million Yuan more than that of the previous year, up 12.8%. The total investment and growth rate both hit a record high. 27 central state organs, enterprises and units invested 135 million Yuan of poverty relief funds and Shanghai issued counterpart anti-poverty funds of 226 million Yuan, up 41% over 2009. Non-governmental organizations put in 245 million Yuan of anti-poverty funds, of which 3.95 million Yuan was domestic matching funds, including 6.75 million Yuan from Humana People to People, 6.6 million Yuan from Oxfam Hong Kong and 11 million Yuan from the Amity Foundation. In addition, other special anti-poverty funds issued in 2010 included: 200 million Yuan of central government’s financial transfer payment funds for entire village advancement of border areas, 3.987 billion Yuan of poverty relief credit loans guided by financial interest subsidy policy, 759 million Yuan of planned anti-poverty funds for supporting contiguous areas in deep poverty concentrated with Dulong people, Shanyao people of Yao Nationality and Lahu people, and 189 million Yuan of anti-poverty funds integrated to solve the food and clothing problem of more than 6000 Mang and Kumu people.

　　【Entire village advancement】  In 2010, the Provincial Poverty Alleviation Office implemented 5100 entire village advancement projects (900 entire village advancement projects for the development of border areas and residents) with investment of 997 million Yuan, covering 16 prefectures (cities) and 123 counties (cities, districts), which benefited 332,600 households and 1.3631 million people. The Provincial Development and Reform Commission arranged 1100 entire natural village advancement projects with work-relief funds and issued a total of 304 million Yuan. The Provincial Ethnic Affairs Commission was responsible for the implementation of 421 entire village advancement projects and put in 148 million Yuan.

　　The province continued to promote the implementation of pilot projects of entire town advancement and launched 24 pilot entire town advancement projects in Yunnan, covering 16 prefectures, 24 towns, 216 village’s committees and 1993 natural villages. The total investment was 3.758 billion Yuan, the central and provincial government each put in 997 million Yuan, the prefecture, city and county financial departments invested in 223 million Yuan, various departments issued 1.421 billion Yuan, social forces provided 183 million Yuan, the masses put in 783 million Yuan through labor services and financial institutions provided credit loans of 142 million Yuan.

　　It strengthened support for special contiguous areas in deep poverty. Yunnan Province planned to issue 759 million Yuan of anti-poverty funds and successively launched poverty reduction projects in Dulong, Shanyao of Yao and Lahu regions, steadily promoted the poverty alleviation of Bo people, integrated and put in anti-poverty funds of 189 million Yuan to solve the food and clothing problem of more than 6000 Mang people and Kumu people, bringing great changes in the appearance of Mang and Kemu villages. The government also steadily promoted the poverty reduction of Shanyao people of Yao Nationality, developed and implemented the overall planning and started the construction of “three points and four villages”, covering 320 Yao households and 1521 people. Meanwhile, Yunnan Province strengthened support for the poverty alleviation in the regions where Lancang and Lahu people live in and has invested 48.4 million Yuan of financial anti-poverty funds so far. According to the planning for supporting the whole nationality by entire town advancement of Dulongjiang, the government arranged financial anti-poverty funds of 11.5 million Yuan. In addition, the government strengthened support for border areas and issued 330 million Yuan of financial anti-poverty funds to 25 border counties, implemented entire village advancement in 663 impoverished natural villages and actively carried out the activities of creating “party branches to help people become rich” and fostering “leaders to help people shake off poverty and get rich”.

　　【Off-site poverty reduction】 In 2010, overcoming the rare drought, rising material costs and other negative factors, Yunnan Province invested 397 million Yuan to implement off-site poverty reduction, including 150 million Yuan for the off-site relocation of 30,000 poor people who almost lost the living conditions, which fundamentally improved the living and development conditions of relocated masses, and 247 million Yuan for renovation of the dilapidated houses of 49,290 households combined with off-site relocation and entire village advancement, with average subsidy for each household increasing with 6000 Yuan to 10,000 Yuan. As a result, humans and animals were separated and the residents’ houses became safe and could resist earthquakes.

　　【Poverty alleviation by credit loans】 In 2010, Yunnan Province planned to issue household loans of 2.989 billion Yuan, 20 million Yuan more than that of 2009, and financial interest subsidy of 149.45 million Yuan. In fact, 3.231 billion Yuan of household loans were issued, covering 7290 villages in 1215 towns of 124 counties (districts), which supported more than 365,000 poor rural households to develop grain production of 1.0665 million mu, cash crops of 3.6267 million mu, economic forestry of 1.676 million mu, livestock breeding of 2.789 million, and the per household income growth reached 1600 Yuan. 840 million Yuan of loans were issued for poverty relief projects, 25.2 million Yuan of financial interest subsidy was allocated, and the projects covered 3140 villages in 534 towns of 61 counties (cities, districts) of 16 prefectures (cities) and helped 5.31 million poor people to increase income. The province developed a total of 41 planting projects, 43 breeding projects and 44 industrialization projects (including small-sized processing), achieving per household income growth of more than 1000 Yuan.

　　【Construction of old revolutionary base areas】 From November 28 to 30, 2010, the second experience-sharing meeting on the poverty alleviation and development in old revolutionary base areas of Yunnan Province was convened in Luliang County, Qujing City of Yunnan Province. Principals of relevant units directly under the provincial government, leaders of provincial, prefectural, city and county poverty alleviation offices and representatives of the provincial, prefectural, city and county promotion councils for construction of old revolutionary base areas and news media attended the event. The meeting aroused strong reactions among people and mobilized the enthusiasm of all circles of society for supporting the poverty alleviation and construction of old revolutionary base areas. In 2010, 800 million Yuan of financial anti-poverty funds were invested in the construction of old revolutionary base areas and special funds of 20 million Yuan were allocated to solve the urgent problems of the poor, including housing, food and drinking water problem, etc, giving priority to old soldiers, old party members, old traffic policemen and impoverished families. It showed the love of party and government for the people living in old revolutionary base areas and made it possible for all the residents in old revolutionary base areas to share the results of reform.

　　【Industrial poverty alleviation】 In 2010, the industrial poverty alleviation in Yunnan Province covered 195 projects in 109 counties (districts) of 16 prefectures (cities) with planned investment of 799 million Yuan, of which 136 million Yuan was industrial poverty relief subsidy issued by central government and 15 million Yuan was industrial poverty relief subsidy issued by the provincial government. In 2010, the province arranged the implementation of 165 planting projects for industrial poverty alleviation with total investment of 610 million Yuan and financial anti-poverty subsidy of 94 million Yuan; and launched 53 breeding projects with total investment of 19 million Yuan and financial anti-poverty subsidy of 41 million Yuan. The province implemented pilot projects of industrial poverty alleviation in 16 pilot counties for convergence of two systems and 3 municipal counties with total industrial poverty reduction subsidy of 57 million Yuan.

　　【Social poverty alleviation】 In 2010, Yunnan Province strengthened its communication and contacts with Shanghai and 27 twinning units and established the joint meeting system and the mechanism for high-level visits. On March 2, the work conference on the fixed-point poverty alleviation of central state organs and enterprises in Yunnan Province was convened in Beijing. On August 28, the 12th joint meeting on Shanghai-Yunnan pairing-off poverty alleviation was convened in Shanghai. 27 units directly under the central government directly invested 135 million Yuan of anti-poverty funds in 43 key counties for poverty alleviation and development in Yunnan Province for the implementation of entire village advancement, industrial poverty reduction, labor export and scientific and technological trainings. Shanghai issued counterpart anti-poverty funds of 226 million Yuan, up 41% over 2009, to support the development of 26 poor counties in Honghe, Wenshan, Pu’er and Diqing Prefecture. It included De’ang and Dulong Nationality into the coverage of poverty alleviation and implemented 358 poverty relief projects, including entire village advancement, industrial development, cooperation in social undertakings and minority support, etc. On May 9, the On-site Meeting on Poverty Alleviation and Development of Yunnan Province and Awards Ceremony for Social Poverty Reduction was convened in Zhaotong, which greatly mobilized the enthusiasm of all circles of society to participate in poverty reduction. 217 provincial state organs, enterprises and institutions directly put in 258 million Yuan of poverty relief funds, the armies in Yunnan, private enterprises, research institutes, collages and vocational schools were all involved in the poverty alleviation in various forms.

　　As for international cooperation, Yunnan Province conducted extensive international cooperation and exchanges in the field of poverty reduction, actively strived for support from international financial institutions and aiding organizations and constantly increased efforts on foreign-funded poverty alleviation. On March 10, the work conference on foreign-funded poverty alleviation in Yunnan Province was convened in Kunming and the province participated in the 11th examination of the World Bank Loan Project – PRCDP in Guangxi. On October 30, it passed the 12th field examination conducted by officials and experts of the World Bank/UK Department for International Development on the “development projects for poor rural communities” in Yunnan Province. Smooth progress was made in the compiling of “Practice and Outlook of Foreign-funded Poverty Alleviation in Yunnan” and the book will be published in the first half year of 2011. Meanwhile, Yunnan Province cooperated with four NGOs to implement 35 anti-poverty projects with investment of 25 million Yuan, including 3.95 million Yuan of domestic matching funds, 6.75 million Yuan from Humana People to People, 6.6 million Yuan from Oxfam Hong Kong and 11 million Yuan from the Amity Foundation. In addition, it continued to promote the implementation of the "Demonstrative Pilot Projects for Farmers’ Cooperatives in Poor Mountain Areas and Poverty Alleviation Mechanism Innovation", a cooperative project with Ford Foundation.

　　【Labor transfer training - Rain Plan】 Taking labor transfer training as an important part of its special action for labor export, in 2010, Yunnan Province allocated 128 million Yuan of special funds for labor transfer training, up 30%, completed transfer trainings for 33,1800 people and transferred employments for 302,600 people with transfer employment rate of 91%, including 72,600 people transferred to other provinces and 229,200 within the province.

　　【Mutual funds for poor villages】In 2010, steady progress was made in the pilot work of mutual funds in poverty-stricken villages and 30 million Yuan of financial anti-poverty funds was issued. The province added four national pilot counties and 16 provincial pilot counties and the projects covered 14 prefectures (cities), 20 counties (cities), 58 towns, 117 village’s committees and 242 villager teams. 241 mutual funds were established and 6,484 rural households participated in the mutual funds.

　　【Disaster response】 Since autumn 2009, Yunnan Province has experienced severe droughts rarely seen in history. More than 27 million people in 125 counties (cities, districts) of Yunnan Province were affected and 1 million people returned poverty due to disaster. In face of the crisis, the Provincial Poverty Alleviation Office promptly sent six working groups to give instructions on self-help production in the affected prefectures and cities and on labor transfer trainings in impoverished areas to reduce agricultural losses and increase non-agricultural income. Meanwhile, it speeded up the issuance and implementation of poverty alleviation plan, about three months earlier than the previous years, which played an active role in drought relief. Through joint efforts of various parties, the province raised drought-relief funds of nearly 250 million Yuan from central units involved in fixed-point poverty alleviation, Shanghai City, China Foundation for Poverty Alleviation, etc, which effectively improved the production and living conditions of the masses in impoverished areas and minimized the losses caused by disasters.

　　【Review of decade of poverty alleviation and development】 Since 2001, based on local actual situation, Yunnan Province issued the "Outline for Poverty Alleviation and Development of Rural Areas in Yunnan Province (2001-2010)", "Decision on Accelerating the Poverty Alleviation and Development in the New Era", "Decision on Accelerating Rural Poverty Alleviation and Development in the ‘11th Five-Year Plan’ Period", "Opinions on Improving the Responsibility System for Provincial Organs, Enterprises and Institutions to Provide Counterpart Support for Poor Areas", "Opinions on Classified Guidance for Accelerating Poverty Alleviation and Development", "Decision on Accelerating the Process of Shaking Off Poverty of the Masses Living in Deep Poverty in Border Areas, Minority Areas and Poor Areas" and other instructive documents to effectively strengthen the leadership, innovate ideas and improve measures so as to promote poverty alleviation and development work. Adhering to development-oriented poverty alleviation, government leadership, sector coordination, social participation and self-reliance, the province targeted at the poor in poverty reduction, highlighted key points and conducted comprehensive development and entire advancement of poor areas, forming a "Great Pattern of Poverty Alleviation" participated by the whole society.

　　Over the past decade, Yunnan Province put in a total of 16.677 billion Yuan of financial anti-poverty funds above provincial level, of which 11.483 billion Yuan was from the central government and 5.194 billion Yuan from provincial government, and allocated credit loans of 21 billion Yuan for poverty alleviation. It focused on “one circle and “two wings” in the poverty reduction: Completed the entire village advancement of 2078 administrative villages and 25300 village teams to directly benefit 1.49 million poor rural households; organized transfer trainings for 2.0231 million labors from impoverished areas; issued project loans of 10.01 billion Yuan to support 39 poverty alleviation leading enterprises, issued 10.848 billion Yuan of household loans to support 2.1692 million households to develop production; and implemented pilot projects of mutual funds in 461 poor villages of 69 counties to solve the production development fund difficulties of 15,100 poor households. The province was the first to give priority to the masses with special difficulties and minorities in poverty alleviation: Implemented comprehensive poverty reduction projects for Bulang, Jinuo, Kucong, Mang and Kemu people, and launched key support for Bo people, Dulong Nationality, Shanyao people of Yao Nationality and Lahu Nationality to promote the construction of old revolutionary base areas. From 2008 to 2010, it issued 2.3 billion Yuan of anti-poverty funds for old revolutionary base areas, accounting for 43.6% of the total anti-poverty funds of the province, allocated special funds of 45 million Yuan and integrated various funds of 250 million Yuan. Meanwhile, the province did a good job of poverty alleviation by prospering frontier and enriching people: implemented two rounds of project construction to prosper frontier and enrich people, constructed entire village advancement projects in 4,902 poor villages of 25 border counties, implemented six major projects, namely infrastructure construction, food, clothing and housing project, industrial fostering, improvement of quality, social security and stability, and ecological protection and construction, and did 30 practical things to benefit the people. The province also constantly innovated the poverty alleviation and integrated development in new contiguous areas: implemented pilot projects of “county-based entire village and contiguous development by integrating funds” in 18 counties and pilot projects of entire town advancement in 24 towns. In addition, the province constructed housing projects for the poor: Implemented off-site relocation-based poverty reduction for 646,600 poor people who almost lost the living conditions and innovated the thatched cottages of 435,500 rural households with special difficulties, which was fully affirmed by Vice Premier Hui Liangyu.

　　In addition, Yunnan actively promoted domestic and international cooperation in the field of poverty reduction. 27 central state organs, enterprises and institutions as well as Tencent Charity Foundation directly invested 780 million Yuan in Yunnan, introduced 1.298 billion Yuan of anti-poverty funds and implemented 1,355 poverty relief projects. Shanghai issued counterpart support anti-poverty funds of 1.305 billion Yuan, up 10%, implemented 3,503 poverty relief projects to directly benefit more than 400,000 people. Foreign investment of 1 billion Yuan was introduced, Yunnan Province issued matching funds of 300 million Yuan, and a total of 1.3 billion Yuan of foreign poverty relief funds were issued. Meanwhile, Yunnan cooperated with 6 international poverty alleviation organizations and four NGOs in the field poverty reduction and the projects covered 1.6 billion poor people.

　　Over the past decade, Yunnan has embarked on a path of poverty alleviation with local characteristics and was titled as “Asian Wealth” by the “Conference of Asian Political Parties on Poverty Alleviation”, making a contribution to China’s success in achieving the MDG of halving poverty-stricken population, Yunnan’s economic development, social stability, nationality unity and frontier consolidation. First, a substantial decline in the number of poor people. The number of the poor in Yunnan Province dropped from 9.819 million at the end of 2001 to 3.25 million at the end of 2010, with a decrease of 6.569 million, and the incidence of poverty fell from 28.4% to 8.6%; Second, a significant improvement of the income of farmers in poor areas. The rural per capita net income of 73 national key counties for poverty alleviation rose from 1,151 Yuan at the end of 2001 to 3,047 Yuan at the end of 2010, and the growth rate of the rural per capita net income in national key counties was one percentage point above the provincial average; Third, a significant improvement of the overall economic development level in poor areas. From 2001 to 2010, the per capita GDP in 73 national key counties for poverty alleviation rose from 2,316 Yuan to 8,590 Yuan, total agricultural output value increased from 31.2879 billion Yuan to 89.7411 billion Yuan, and per capita local fiscal revenue grew from 130 Yuan to 546 Yuan; Fourth, a significant improvement of infrastructure in impoverished areas. The province increased irrigation area of 3.153 million mu, solved and alleviated the drinking water safety problem of 4.9616 million people, and increased village hardened roadbeds of 51,000 kilometers and natural village-reaching hardened roads of 87,000 kilometers; Fifth, rapid development of social undertakings in impoverished areas. The government repaired and built 10,278 schools in the 73 key counties, set up clinics in 11,000 administrative villages, and more than 90% of the farmers participated in the new rural cooperative medical system; Sixth, continuous improvement of the ecological environment of impoverished areas. Combined with the implementation of ecological environmental protection projects such as "Colorful Yunnan" protection action, protection of natural forests and returning farmland to forest or grassland, the province strived to improve the ecological environment of impoverished areas, returned farmland of 1.188 million hectares to forest and farmland of 190,000 hectares to grassland, and built 1.375 million biogas digesters and energy-saving stoves.